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author RocketCert Staff
date 11.11.2021

Nampa mayor Debbie Kling recently announced her approach to new construction and developments. In a special meeting, Kling announced that the city of Nampa will not place a moratorium on new construction projects. 

The special meeting took place just days after the Caldwell City council decided to pause new developments for 120 days. This pause was in response to a new Idaho law, House Bill 389.

The Impacts of HB 389

This bill limits the amount that counties and cities can tax new construction and development projects. HB 389 also places a cap on overall local budget growth.

The Caldwell City Council was particularly concerned with the city budget limit detailed in the bill. As a response, they placed a pause on new residential developments for up to 120 days. 

The City Council cited concerns about strains on funding to public safety services. 

Kling, the mayor of Nampa, said that she is continuing to refine the specific fiscal analysis tools used to project the city’s economic status. This includes analysis into the growth of continued funding for city services. 

Mayor Kling maintains that “growth needs to fund growth.” She notes that city officials are monitoring service level requirements and their relation to expected property tax revenue. 

Detailed fiscal analysis helps to ensure that development projects do not overburden citizens. This is especially true when they are asked to pay their fair share of property taxes.

Property Taxes and the Effects on Local Budgets

Idaho Governor Brad Little signed House Bill 389 into law recently. When signing it, he claimed to have serious concerns about the potential for unintended consequences of the bill.

The bill requires counties, cities, and municipalities to adhere to certain limits on new growth. These changes were designed to decrease property taxes on residents. However, as the governor noted, economic side effects were possible.

House Bill 389 required city and county budgets to:

  • Account for 8% capped budgetary growth
  • Account for a 90% cap on new construction project value

These limitations place significant strain on certain Idaho cities and counties.

Different Approaches to Budgetary Challenges

The Caldwell City Council voted to halt new developments for up to 120 days. The city plans to use this time to reconfigure their budget under the constraints of HB 389.

The members of the city council signaled that they hope the moratorium will be temporary. Their concerns arise because budget limitations will affect public safety service like the fire and police departments.

This decision highlights a difficult trade-off. Treasure Valley is undergoing a housing shortage. New developments are crucial for meeting the demand for more residential structures.

Under the leadership of Mayor Kling, Nampa is choosing to move ahead without a development moratorium. Kling argues that housing development and growth must be a priority. 

She points out that purposefully slowing growth in the name of budgetary concerns would cost her constituents. Construction and housing development can provide individuals in Nampa with paying jobs. 

Additionally, a pause on building could exacerbate the problem of a limited housing market. The lack of sufficient housing means that residents pay more for less and face an inflated market price on homes.

Nampa and Contracting Jobs

Because Nampa has chosen to continue with new developments, jobs for licensed contractors are available. Many people are choosing to take advantage of this valuable economic opportunity. 

If you hope to obtain an Idaho contractor’s license, RocketCert has the tools you need to succeed! We provide online Idaho Contractor exam prep, as well as Idaho continuing education courses.

For those who are wanting to renew their contractor’s license, RocketCert offers continuing education resources. We are so confident in our training that we offer a No Pass, No Pay guarantee

To begin training for your Idaho contractor’s license, partner with RocketCert now!